France is the real master of monetary policy in the eurozone. And so the word of the governor of the French central bank, Francois Villeroy de Galhau, carries weight. He has now called for the ECB to cut interest rates for the first time in April. In view of the catastrophic situation of European industry and the banking sector, this is probably only logical. The recessionary and disinflationary economic environment in the eurozone is putting massive pressure on ECB officials to re-inflate asset bubbles and loosen credit conditions. Because behind the iron curtain of media silence, the European banking sector is seething. High loan default rates and the crash on the bond markets have damaged the balance sheets of European banks. Now the ECB is on the verge of losing the chicken game to the Federal Reserve and being the first to signal to the markets: we can't take any more! Real interest rates are no longer to be expected in our economic area. The upcoming challenge for the ECB will be to guide the bankrupt states of the eurozone through the next credit crisis, which is as sure to come as the Amen in church.